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1. (20 pts) Shirly, Curley, and Burley are partners sharing profits and losses 40/40/20 respectively. Their capital balances are: Shirley 175,000 Curley 300,000 Burley 275,000
1. (20 pts) | Shirly, Curley, and Burley are partners sharing profits and losses 40/40/20 respectively. | |||||||
Their capital balances are: | ||||||||
Shirley | 175,000 | |||||||
Curley | 300,000 | |||||||
Burley | 275,000 |
b. | Assume instead, Furley puts $250,000 cash into the partnership and is awarded 20% interest. | |||||||||
Record the entry of Furley using the bonus method. | ||||||||||
c. | Assume instead, Furley puts into the partnership $350,000 of cash and is awarded a 40% interest. | |||||||||
Record the entry of Furley using the goodwill method. | ||||||||||
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